Management Fraud FRAUD EXAMINATION ALBRECHT & ALBRECHT Liability, Asset & Inadequate Disclosure Frauds Chapter 12

Management Fraud What makes it hard for auditors to detect fraud?

Management Fraud How is liability and revenue fraud done?

Management Fraud How is liability fraud committed?

Management Fraud What are accrued liabilities?

Management Fraud How are unearned revenues abused for fraud? EXPLAIN

Management Fraud Define Contingent Liability How are they abused?

Management Fraud What are some analytical symptoms of liabilities fraud?

Management Fraud What symptoms appear in documents?

Management Fraud What are some other clues to liabilities fraud?

Management Fraud Complete Chart Liability Relationships Liability Account Balances With Real-World Numbers With Industry Competitors Analysis of Period-to-Period Changes Analysis of Period-to-Period Changes

Management Fraud What is a recommended orderly process for examining for liabilities fraud?

Management Fraud What does improper capitalization or expensing mean?

Management Fraud List Some Ways Fixed Assets Are Overstated

Management Fraud What does publicly traded mean?

Management Fraud List Some Symptoms of Asset Fraud

Management Fraud Discuss & Define Inadequate Disclosure Fraud

Management Fraud How are footnotes made misleading?

Management Fraud Terms Match Purchase something, one company by another Long-term loan secured by real property Stocks, bonds and other non-cash assets Rent asset, do not own, make periodic payments Mortgage Acquisition Lease Merger Marketable Securities Combining two businesses into one business

Management Fraud Terms Match Asset that is not tangible, can’t touch Retirement benefits paid to former employees Property, Plant & Equipment Capitalized expenditure to be expensed in future Deferred Asset Fixed Asset Pension Intangible Asset Capitalization Recording expenditure as an asset

Management Fraud Terms Match Assets are recorded at higher values than they should be Agreement to buy back something already sold Liabilities are understated Issuing financial statements with inadequate disclosure Liability Frauds Disclosure Frauds Repurchase Agreement Asset Frauds